Will SSS Calamity Loan Be Deducted from Salary Loan?
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Will SSS Calamity Loan Be Deducted from Salary Loan?
When disaster strikes — like typhoons, earthquakes, or volcanic eruptions — many Filipinos rely on the SSS Calamity Loan for emergency funds. But what if you already have an SSS Salary Loan? A common question is:
“Will my calamity loan be deducted from my salary loan?”
Let’s break down the rules, explain how SSS handles both loans, and help you understand what really happens to your salary loan when you apply for a calamity loan.
đź’ˇ Understanding the Two Loans: Salary Loan vs. Calamity Loan
What Is the SSS Salary Loan?
The SSS Salary Loan is a short-term cash loan given to members to meet immediate financial needs. It’s based on your Average Monthly Salary Credit (AMSC) and your number of contributions.
Quick facts:
Interest rate: 8% per annum
Service charge: 1% of the approved loan
Loan term: 24 months for a 2-year loan (or 12 months for a 1-year loan)
Deduction: Monthly amortizations are automatically deducted from your salary
The SSS Calamity Loan is a special assistance program for members affected by government-declared calamities. It’s similar to the Salary Loan, but with slightly lighter terms and specific eligibility based on the declared disaster area.
Typical conditions:
Must be a resident of the affected area
Must have at least 36 posted contributions (6 within the last 12 months)
Must not have an existing calamity loan or loan restructuring balance
Must not have an overdue salary loan
⚖️ So, Will the Calamity Loan Be Deducted from the Salary Loan?
Here’s the straight answer:
❌ No, the SSS will not automatically deduct your Calamity Loan from your Salary Loan.
They are separate loan programs — but they are interconnected in your SSS account. Here’s what that means in practice:
1. You Cannot Have Overlapping Loans
If you still have an outstanding Salary Loan, SSS may offset or consolidate the amount depending on your repayment status.
If your Salary Loan is current (updated), you may still qualify for a Calamity Loan.
But if your Salary Loan is delinquent or overdue, your Calamity Loan application may be rejected or used to offset your unpaid balance.
In other words, SSS won’t deduct your calamity loan from your salary loan automatically, but they will check your balance and may apply the new loan to your arrears first.
🧮 Example Scenario: How the Deduction Works (if applicable)
Let’s use an example to make it clearer.
Scenario A: Maria has an existing Salary Loan with a remaining balance of ₱10,000. After a major typhoon, she applies for a ₱20,000 Calamity Loan.
If her salary loan payments are updated, SSS approves her calamity loan in full, and she receives ₱20,000 (less service charge and pro-rated interest).
However, if Maria has ₱3,000 unpaid amortizations, SSS will deduct the ₱3,000 from the calamity loan proceeds and release only ₱17,000 to her bank account.
That’s how SSS “offsets” — not directly between loans, but by using the new loan to settle unpaid dues.
đź“‹ Official Rule from SSS: Offset and Priority Policy
According to SSS rules:
“A member with an existing overdue SSS loan will have his new loan proceeds applied to the outstanding balance before any release of funds.”
So technically, the calamity loan is not deducted from the salary loan, but any overdue balance will be settled first before you get the remaining amount.
This ensures that members don’t accumulate unpaid loans and remain in good standing with SSS.
🧾 Loan Computation Refresher
To understand how much you can actually receive, let’s review the SSS Salary Loan computation (the same principle applies to Calamity Loans).
Factor
Description
Interest Rate
8% per annum (based on diminishing balance)
Service Charge
1% of approved amount
Loan Term
24 months (for 2-year loan)
Payment Start
2nd month after approval
Late Payment Penalty
1% per month on unpaid amortization
đź“… Pro-Rated Interest Example (Based on Approval Date)
Let’s say your ₱20,000 loan was approved on March 12, 2025.
Interest is charged from March 12 to March 31 (20 days) + full April (30 days) = 50 days total.
Annual interest = 8% × ₱20,000 = ₱1,600
Daily interest = ₱1,600 ÷ 365 = ₱4.38
50 days × ₱4.38 = ₱219.18 (pro-rated interest)
✅ SSS deducts ₱219.18 upfront from your loan release to cover those 50 days of interest. ✅ Regular monthly amortization starts in May 2025.
đź’ˇ You can double-check these figures with the SSS Salary Loan Calculator to know your actual take-home amount.
🧠Key Differences Between Salary Loan and Calamity Loan
Feature
SSS Salary Loan
SSS Calamity Loan
Purpose
Personal financial needs
For members in calamity-declared areas
Eligibility
At least 36 contributions (6 in last 12 months)
Same + residence in affected area
Interest Rate
8% per annum
Usually 10% lower than salary loan, depending on program
Loan Term
Up to 24 months
Up to 24 months
Application Method
Through My.SSS or employer
Through My.SSS under calamity loan program
Deduction Policy
Automatic salary deduction
Separate but subject to offset of overdue loans
⚠️ What Happens If You Don’t Pay?
If you fail to pay either loan:
Interest and penalties will continue to accrue.
Future loans (like maternity, calamity, or salary loan renewal) may be blocked.
SSS may deduct unpaid loans from future benefits, such as maternity, sickness, or retirement claims.
So it’s always better to stay updated on your amortizations or settle them early if you can.
🪙 Can You Have Both Loans at the Same Time?
Yes — but only under certain conditions.
You can have both a Salary Loan and a Calamity Loan if:
Your Salary Loan payments are updated.
You are eligible under the declared calamity program.
You meet all contribution and residency requirements.
Otherwise, SSS may deny your calamity loan or apply part of it to your existing balance.
🧠Best Practice: How to Manage Your Loans Wisely
Check your loan status regularly in your My.SSS account.
Use the SSS Salary Loan Calculator to project your payments.
Always keep your contributions updated — it affects both loan approval and benefit eligibility.
Avoid overlapping loans; wait until your first loan is almost paid off before applying for another.
If you’re affected by a calamity, apply early since SSS sets application deadlines for disaster loans.
✨ TL;DR (Summary)
Key Point
Explanation
Is calamity loan deducted from salary loan?
❌ No, they are separate loans. But if you have unpaid balance, it may be offset.
Can you apply with existing salary loan?
âś… Yes, if payments are updated.
What if you have overdue payments?
⚠️ SSS may deduct from your calamity loan proceeds.
8% per annum (salary loan); slightly lower for calamity loans.
âť“ FAQs About SSS Calamity and Salary Loans
1. Can I apply for a Calamity Loan if I still have an unpaid Salary Loan?
Yes, but your Salary Loan must be updated. If you have overdue payments, SSS will deduct them from your calamity loan proceeds.
2. Does the Calamity Loan affect my future Salary Loan applications?
Yes. You must settle your existing loan first before applying for a new one or renewal.
3. How can I know if my area is qualified for a Calamity Loan?
Check SSS announcements through My.SSS or their official social media. They publish lists of affected areas per declared disaster.
4. Can I apply for both loans at the same time?
Yes, as long as both accounts are in good standing and the calamity program is open for your area.
5. Will SSS deduct unpaid loans from my future benefits?
Yes. Any unpaid Salary or Calamity Loan will be deducted from your benefits, such as maternity, sickness, or retirement payouts.
âś… Final Thoughts
The SSS Calamity Loan is a lifeline for members hit by natural disasters — but it’s important to know how it interacts with your Salary Loan. They’re separate loans, but your payment record determines your eligibility and how much you actually receive.
If you’re unsure how much you’ll get after deductions or interest, try using the 👉 SSS Salary Loan Calculator to see your potential loan proceeds, monthly amortization, and net take-home amount.
Being informed means being financially ready — even in times of calamity. 🌦️
